Vanke, the second-largest developer by sales in the country, has been diversifying into commercial businesses and new businesses such as rental housing as the residential sector struggles under policy cycles and fierce competition.

As part of a leading Chinese private equity consortium backed by senior executives from GLP, Vanke won a bid last month to acquire the warehouse operator for $11.6 billion, marking Asia’s largest private equity buyout.

“There’s big room for development in traditional business, but not every developers should step up their investment,” Chairman and Chief Executive Officer Yu Liang told an earnings conference. Yu succeeded founder Wang Shi in June and became the company’s chairman.

“There’s not only residential property but other businesses such as long-lease apartments and warehouses...developers also need to develop new capabilities and new opportunities.”

The developer posted a 33.5 percent rise in first-half core profit on Thursday, helped by a property boom and higher margins, and said it expected the land market to cool.

GLP is already the world’s second-largest logistics property developer, leveraging on Vanke’s presence and resources, they are aiming to become the leader, Vanke said.

Yu also said the developer would consider buying stakes in state-owned enterprises (SOEs) as part of the government’s push to reform and restructure the sector after receiving several invitations from SOEs.